Chapter 17 MR2100 Advertising is... Advertising is one key element of the promotional mix. Advertising is defined as any direct paid form of mass communication about a product or service or idea by some identified sponsor. Types of Advertisements Advertisements can come in two types: Product Advertisements - Advertises a product directly. Pioneering Ads- Provides information on a new product such as what it is, what it can do and where to buy it. Competitive Ads- Persuades a customer to buy the advertised product rather than the competitive product. Used in the growth and maturity part of the products lifecycle. Reminder Ads- Used to reinforce previous knowledge of the product. The primary purpose of this is to convince people who have bought the product that they have made a good choice. Used in the maturity stage of the product life cycle. Types of Advertisements Advertisements can come in two types: Institutional Advertisements - Advertises a company, designed to build goodwill and/or image. Advocacy Ads-Advocates a corporate position, political or otherwise Pioneering Ads- Provides information on a new or unknown company to the public. Competitive Ads- Persuades a customer to buy one companies products over those of a competitive company. Reminder Ads- Used to reinforce previous knowledge of the company. Type of Advertising Advertising is designed in one of two ways: Direct Response Advertising - Designed to elicit an immediate response by the customer. eg - including a statement like Call Now..., or dont delay Delayed Response Advertising - designed to make the customer aware of the product so that when they do eventually buy they consider that advertised product. Developing an Advertising Program - 3 stages Three stages in developing an advertising program: 1) Plan the advertising effort 2) Implement the advertising 3) Evaluate the advertising and its effect on sales. Developing an Advertising Program - Stage 1 Planning the advertising effort Target the audience by asking and answering: Who are we selling this to? Specify the objectives of the advertising effort. Make sure the objectives are clear. Note the Hierarchy of Effects. Developing an Advertising Program - Stage 1 cont... Planning the advertising effort Select the advertising budget and determine how to create the budget. Budgets can be based on a Percentage of Sales, Competitive Parity, All you can afford to spend, or Objective and Task Create the message, determine the content and how the content should be presented (Appeal). Developing an Advertising Program - Stage 1 cont... Planning the advertising effort Select the right media. Media choice is key to effective advertising. Be aware of Terms such as Reach, rating, frequency, gross rating points and cost-per -thousand. Also be aware of the different types of media as well as advantages and disadvantages of the different media types Developing an Advertising Program - Stage 2 Implementing the advertising plan Prior to launching the advertising campaign, you need to pre-test the ads. This is done using Portfolio tests, or Jury tests or more sophisticated Theatre tests. Developing an Advertising Program - Stage 3 Evaluating the advertising plan and implementation and the overall effect on sales. Once the campaign is underway, post-testing must be done to evaluate the effectiveness of the effort. Numerous post tests can be done including aided recall, unaided recall, attitude tests, inquiry tests and sales tests. Sales Promotion Consumer Oriented Sales Promotions Coupons Deals Premiums Contests Sweepstakes Samples Continuity Programs (Frequent user promos) Point-of-Purchase displays Consumer rebates Sales Promotion Trade Oriented Sales Promotions Allowances Discounts Co-op Advertising Training of sales force Public Relations Public relation hopes to positively influence the perceptions of potential customers towards the organization. Organizations do not directly pay for Public Relations. Unlike with paid advertising organizations exercise limited control over public relations efforts Public Relations Tools Some Frequently used Publicity Tools News releases News Conferences Press Kits Informational Documents Web Sites Special Event Sponsorship Public Service Activities Promotional Materials